Csr Sumamry
Trade Unions in the TNC Supply Chain and their relationship with the CSR movement
Case Summary
ESRC/Case study/B/1
Chinese enterprises are essentially passive players at the sharp end of CSR in China. They are in a position of having to juggle between the different factors governing the development of industrial relations in China, including trade union reform. In this often tense dynamic, CSR is seen as an external factor and trade unions an internal factor. These two factors have an impact on each other. As part of the research for this case study, the research team (RT) ‘shadowed’ a CSR audit. The factory had come under very heavy CSR pressure in 2004. Altogether, the RT carried out two investigations: in March (see earlier printed report) and August 2006
Initial conclusions:
1) That factories undergoing CSR audits have better working conditions than those that don’t.
2) There is no evidence to suggest that trade unions have an impact on wage levels at enterprise level. However, factories subject to CSR pressure are generally large workplaces and this was perhaps a factor in improving labour conditions. Moreover, CSR-targeted factories are prone to data distortion due to ‘training of workers’ answers’ in interview and double or even triple accounting.
Enterprise Y was established in 1997 and now has 1,200 workers. It was ‘Re-registered’ in 2002 to take advantage of tax breaks etc. It manufactures electronic goods for export chiefly to three retailers and over 50% of goods go to a single US company.
Employment breakdown: 80 managers, 300 skilled workers; remainder are ordinary workers. Managers and skilled workers have contracts and social insurance based on minimum legal standards. The extent of contracts among unskilled workers remains unclear. The enterprise had previously supplied a ‘comprehensive’ contract and social insurance list to CSR audit team (excluding probationary workers) but the RT’s interviews with workers revealed that many
Case Summary
ESRC/Case study/B/1
Chinese enterprises are essentially passive players at the sharp end of CSR in China. They are in a position of having to juggle between the different factors governing the development of industrial relations in China, including trade union reform. In this often tense dynamic, CSR is seen as an external factor and trade unions an internal factor. These two factors have an impact on each other. As part of the research for this case study, the research team (RT) ‘shadowed’ a CSR audit. The factory had come under very heavy CSR pressure in 2004. Altogether, the RT carried out two investigations: in March (see earlier printed report) and August 2006
Initial conclusions:
1) That factories undergoing CSR audits have better working conditions than those that don’t.
2) There is no evidence to suggest that trade unions have an impact on wage levels at enterprise level. However, factories subject to CSR pressure are generally large workplaces and this was perhaps a factor in improving labour conditions. Moreover, CSR-targeted factories are prone to data distortion due to ‘training of workers’ answers’ in interview and double or even triple accounting.
Enterprise Y was established in 1997 and now has 1,200 workers. It was ‘Re-registered’ in 2002 to take advantage of tax breaks etc. It manufactures electronic goods for export chiefly to three retailers and over 50% of goods go to a single US company.
Employment breakdown: 80 managers, 300 skilled workers; remainder are ordinary workers. Managers and skilled workers have contracts and social insurance based on minimum legal standards. The extent of contracts among unskilled workers remains unclear. The enterprise had previously supplied a ‘comprehensive’ contract and social insurance list to CSR audit team (excluding probationary workers) but the RT’s interviews with workers revealed that many